Option A is correct. The gross earnings that has been calculated for this 12 months is given as 17545.
The required details for gross earnings in given paragraph
How to resolve for the gross earnings
22050 × 97.5%(100-2.5%) = 21498.75
= 21498.75 × 0.975 = 20961.28
= 20961.28 x 0.975 = 20437.24
= 20437.24 x 0.975 = 19926.31
= 19926.31 × 0.975 = 19428.15
= 19428.15 x 0.975 = 18942.forty five
= 18942.forty five x 0.975 = 18468.80
= 18468.89 × 0.975 = 18017
= 18007 × 0.975 = $17545
Hence we are able to see on the give up of the answer that the price of the gross earnings in 2028 = $17545. Gross earnings is the earnings a business enterprise makes after deducting the charges related to making and promoting its products, or the charges related to offering its services. Gross earnings will seem on a business enterprise's earnings assertion and may be calculated with the aid of using subtracting the fee of products sold (COGS) from revenue (income).
These figures may be determined on a business enterprise's earnings assertion. Gross earnings will also be called income earnings or gross earnings.
To know about Gross earnings click here
brainly.com/question/21637154
#SPJ4
Complete question
You are considering an investment into Company XYZ and need to determine the company's value and the appropriate investment amount. You have been provided with historical financial statements for the past three years in order to build a forecast model. Key assumptions to use include:
Future sales revenue is assumed to increase at 2.5% annually.
Gross margin for 2021E is assumed to be equal to the average gross margin % for 2019 and 2020, but will decrease by 2.5% (i.e. 250 bps) each year thereafter
SG&A expense is assumed to be a percentage of revenue for the forecast period. That percentage is equal to the 2018-2020 average
Depreciation expense is assumed to be a percentage of revenue for the forecast period. That percentage is equal to the 2018-2020 average
The tax rate for the forecast period is assumed to be equal to the effective tax rate for 2018
Capital expenditures for any given year in the forecast period is assumed to be 3x the prior year's depreciation expense. For example, 2021 capital expenditures is equal to 3x 2020 depreciation expense.
No new debt or equity is assumed to be issued
Download CFI_-_FMVA_Practice_Exam_Case_Study_A.xlsx and answer the following 12 questions.
1 What is Gross Profit in 2028E using the assumptions listed above and on the Control Panel?
$17,545
$30,704
$27,780
$40,938
